Which of the following statements are correct concerning the foreign exchange market?
I.The trading ﬂoor of the foreign exchange market is located in London, England.
II)The foreign exchange market is the world's largest ﬁnancial market.
III)The four primary currencies that are traded in the foreign exchange market are the U.S.dollar,
The British pound, the Canadian dollar, and the euro.
IV)Importers and exporters are key players in the foreign exchange market.

Question

Which of the following statements are correct concerning the foreign exchange market? 
I.The trading ﬂoor of the foreign exchange market is located in London, England.
II)The foreign exchange market is the world's largest ﬁnancial market.
III)The four primary currencies that are traded in the foreign exchange market are the U.S.dollar,
The British pound, the Canadian dollar, and the euro.
IV)Importers and exporters are key players in the foreign exchange market.

Quizplus · Accepted Answer

Statement I is incorrect as the trading floor of the foreign exchange market is decentralized and operates 24 hours a day across different time zones. Statement III is also incorrect as while the US dollar, Euro, British pound and Japanese yen are major currencies traded in the foreign exchange market, the Canadian dollar is not one of the major currencies. Statement II and IV are correct as the foreign exchange market is the largest financial market in the world and importers and exporters are key players who contribute to the demand and supply of different currencies. Therefore, the best choice is option B.

Which of the Following Statements Are Correct Concerning the Foreign